Have you ever heard of the saying: “Even a DEAD CAT will BOUNCE if dropped high enough”?

A ‘Dead Cat Bounce’ is the term traders used to define a short-lived recovery from a falling security.
Naalala nyo ba ito bago mag-March 2016, ng biglang bumagsak ang price ng PLDT (TEL)?
After the bounce, it continued to fall all the way down to 1614!

Any price that falls lalu na kung mataas ang pinanggalingan will most likely bounce. How high is the bounce? Well, nobody can tell. But definitely, the bounce will not easily go back from the price where it came from.

The important thing to learn here is how to know the price where it will bounce. Let me show you one of my recommendations in IGAN Stocks Reco Mula Kay Green Stickman. This is LRW:

How did I know that it will bounce on that price? There are actually ways on how to predict the bounce price. Like for example the use of Fibonacci Retracement tool.

So anong lesson para sa “Deadly Dead Cat Bounce” na ito? There are 4 important lessons that I want to share to you:

Do you have anything to add? Just post your comment below:

Is this post helpful? If it does, please help me to publish quality articles like this. Send some TIPS to keep this website alive by clicking the paypal button or sending Bitcoins to BTC address below:

OR better if you could support this website by buying my book (This is available both on paperback and e-book version)!
A true Green Stickman avid reader would definitely have this one. Limited copies only for the paperback! So make sure to grab your copy.